Panasonic Hints At New Battery Factory For Tesla In China

Panasonic Tesla

JAN 11 2018 BY MARK KANE 17

At CES 2018, Panasonic presented some new lithium-ion cells, but what caught our attention was the mention of a Panasonic/Tesla battery factory in China.

Panasonic Cell

According to the Nikkei, Panasonic’s president Kazuhiro Tsuga said that the company is considering a new battery factory in China (in addition to its current one in Dalian) for Tesla electric cars. It’s been suggest that Tesla is considering making cars in Shanghai.

According to Nikkei:

“…its [Panasonic’s] main plant in the northeastern Chinese city of Dalian already produces batteries, although they are a different type than those it supplies to Tesla.”

It’s especially interesting because the Tesla Gigafactory is still far (at least a few years) from reaching its full production capacity.

There’s some more news on the Tesla front. Nikkei reports:

“Tsuga also mentioned that Tesla had lowered its targeted production increase to 2,500 cars a week from 5,000. There has also been a delay in the planned delivery of car batteries from Panasonic. “

To bring battery and car production to China (and maybe avoid taxes or even catch onto some of the ample incentives) Tesla’s sales forecast for China must be much higher than we’ve been led to believe.

Source: Nikkei

Categories: China, Tesla

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17 Comments on "Panasonic Hints At New Battery Factory For Tesla In China"

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Six Electrics
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Six Electrics

The Gigafactory will never be able to compete with China on cost, or agility. Commoditiy manufacturing in the US is dead.

Alaa
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Alaa

+1

Get Real
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Get Real

I have to hand it to 6 Pretend Electrics, not only does he sell out Tesla, but now he sells out all of America.

Anything for a few more greasy shekels in your pocket.

While obviously America can’t compete with China’s low wage costs there is no reason (except for sellouts like 6E) why America can’t compete well in very highly automated manufacturing.

And, if you look at everything on a sustainability level (which we should), it makes no sense to import everything because of the pollution and other costs of long-range shipping.

It is far better to produce as much as possible regionally.

Derek
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Derek

+1

Dav8or
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Dav8or

The USA is nearly dead. In the next 10-20 years we won’t be able to compete with China on anything. Soon there will be nothing they can’t do, innovation will come from there and their home market will be strong enough that the US market will be irrelevant.

Nobody can say they’ve been sneaky and we couldn’t see it coming. Out of nothing but pure greed, we have partnered with China to bring about our own destruction. Now the Japanese, Koreans and Europeans are also doing it. China will be the biggest super power the world has ever seen and it will dictate the austerity measures to us for our eventual bailout.

This article just shows that even the Japanese, Elon Musk and Tesla is not above the temptation of great big short term profits even if it does ultimately lead to their own demise.

Merv
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Merv

China is the largest auto market in the world. Why do you assume this new battery factory is for export? It’s normal for auto manufacturers to site manufacturing close to their markets. The Nevada Gigafactory isn’t going anywhere.

SJC
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SJC

The world market is strong enough to make U.S. not that big a deal.

MARIUS ANDREAS
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MARIUS ANDREAS

The new revolution is in autonomy and automation. The new factories doesn’t need people to work. So indifferent if it’s in China or US the price will be almost the same. What will go up will be customs duties.
In 15-20 years will be the end of capitalism how we know today. That’s way the US, China, UE must to prepare for the switch.
Switzerland made this switch in 19 century.

Pushmi-Pullyu
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Pushmi-Pullyu
3/4/5/6/7 Pretend Electrics said: “Commoditiy manufacturing in the US is dead.” Dav8or said: “The USA is nearly dead.” What, is there a new trend among serial Tesla bashers to promote the idea that Western civilization is dying? The first volume of Oswald Spengler’s The Decline of the West was published in 1918, and it has been fashionable among the effete “elite”, and pseudo-intellectuals, to espouse that decadent philosophy ever since. But to paraphrase Mark Twain: Reports of America’s death have been greatly exaggerated! Certainly China is on the rise towards being a true Superpower. That’s been obvious to anyone who is willing to look reality in the face, and I’ve been surprised to see some arguing that wasn’t true, as recently as only a few years ago. It’s normal for there to be two Superpowers in the world. In the Napoleonic era it was Great Britain and France. More recently, following WW II, it was the U.S. and the Soviet Union. The state of the world following the Soviet collapse, a world with only a single power, was an abnormal situation. Seeing the rise of China as a zero-sum game, where the U.S. must decline in equal amounts with China… Read more »
Dav8or
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Dav8or
Sure. We’ll be equal with China, just like the British Empire, the previous world super power, remained equal with the United States as we came to power. Sorry, no. We will be swept aside along with the EU everybody else in Asia and Russia. The only potential equal in the far future might be India, but they have a long way to go if that’s what they want to do. The United States has about 350 million inhabitants total. China has about 350 million middle class consumers alone. That doesn’t even count for the rich upper classes and the hundreds of millions of poor, many of which will rise to the status of middle class and make their country even more powerful. What this means is a potentially crazy strong economy that can stand on it’s own, but also a huge number of engineers, scientists and designers. China’s problems have been that they lag behind in technology, innovation and quality, but that is rapidly changing as China’s young are educated alongside ours and the business community in the US and the EU are tripping over themselves to teach the Chinese all they need to know to eventually put us out… Read more »
Pushmi-Pullyu
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Pushmi-Pullyu
“Sure. We’ll be equal with China, just like the British Empire, the previous world super power, remained equal with the United States as we came to power.” The British Empire remained the dominant world power until its male population was decimated during WW I. The loss of the British Empire certainly did not happen because of some zero-sum competition between the U.S. and Great Britain, which seems to be the idea you’re pushing! World influence isn’t a zero-sum game. International politics are much more complex than that. Seeing everything as a zero-sum game is a mark of right-wingnut thinking; are you trapped inside that bubble? “Sorry, no. We will be swept aside along with the EU everybody else in Asia and Russia. Well I’m sure that Oswald Spengler would have agreed with you. 🙂 Fortunately, I don’t live in the same doom-and-gloom world you’ve trapped yourself inside. “The United States has about 350 million inhabitants total. China has about 350 million middle class consumers alone.” You seem to be confusing quantity with quality. The British Empire ruled the world with far, far less population than the U.S. has, and an even smaller fraction of the world’s total population in its… Read more »
Someone out there
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Someone out there

At least you have a lot of bombs. The US alone spends 1/3rd of the world’s cumulative military spending and apparently it’s not enough. Most countries choose to spend their budget developing their society, the US is more interested in bombing other countries.

If the US halved its military budget it would still be the biggest in the world by a wide margin but it would also be able to take care of most of the social issues in the country.

ffbj
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ffbj

Sure. Whatever. Though new factories and record low employment. Annoying facts and such may disagree, but don’t let that stop you. It hasn’t so far.

Nix
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Nix

Seven Electrics* — The China Gigafactory will be for the China/Pacific Rim region. Just like the European Gigafactory will be for the EU region. This has been covered many times by Tesla.

_________________

* — If he can make up electric cars he owns, why can’t I? His 7th electric car is a Trabant nT EV, which he enjoys driving equally the same as his 6 other imaginary EV’s:

http://www.trabant-nt.de/374/en/the-project/trabant-nt.aspx

Nix
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Nix

This confirms what Tesla announced back in the Q3 2017 conference call — that they are close to announcing a new Gigafactory in China that will be dedicated to producing batteries for vehicles sold in China and Pacific Rim nations ONLY. (They were very, very clear about this).

This is part of their overall plan to have regional factories for each of their major regions in the future, instead of building only in the US. (This is similar to how every major car maker does production).

It makes sense that Panasonic would be joining them in that gigafactory too.

I would expect something official no sooner than when they finally ramp up the Model 3 and announce that all their battery pack production problems in GF1 have been resolved.

Pushmi-Pullyu
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Pushmi-Pullyu
“To bring battery and car production to China (and maybe avoid taxes or even catch onto some of the ample incentives) Tesla’s sales forecast for China must be much higher than we’ve been led to believe.” I don’t see the logic there, at all. China recently placed restrictions on sales of some EVs based on the type of batteries used in the cars; batteries not made in China. If Tesla wants to get better access to the Chinese market, and wants to help ensure that the arbitrary rules which China keeps adding to keep out foreign competition won’t affect them, or at least will be less likely to, then Tesla will have to make cars in China for sales in China, and will also have to use batteries made in China. So for Tesla to set up an auto assembly plant in China, as it has recently been talking about doing, and for Panasonic to start talking about setting up a battery factory in China exclusively to supply Tesla cars, is in no way an indication that “Tesla’s sales forecast for China must be much higher than we’ve been led to believe.” On the contrary, it’s a pretty strong indication… Read more »
Windbourne
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Windbourne

Tesla/Panasonic would be FOOLS to start manufacturing in CHina. All that will do is give up their manufacturing secrets to CHina.
And the worse part is that they will STILL pay a great deal more for tariffs/vats than Chinese car makers to sell to less than 1/6 of the world population.
It is NOT worth it.
Better to create a factory in Australia that has all of the elements needed (lithium, cobalt,steel, aluminum, etc), and then export to various Asian nations.